When genius failed

I just finished reading the book "When Genius Failed" by Lowenstein, an extraordinary account of the story of Long Term Capital Management (LTCM) a hedge fund created in America in the second part of the 90s by formers Salomon Brothers bond traders and 2 Nobel Prize Professors, Robert Merton and Byron Scholes (Nobel Prize Winner 1997 for the Black-Scholes Option Formula).

The book analyses the boom and bust story of LTCM, that in 5 years of existence was managing at one point over 125 billion dollars but at the end was responsible for the financial crisis of 1998 that almost blow completely several emerging market economies (the Federal Reserve Bank of New York took the unprecedented step of facilitating a bailout of the LTCM, out of fear that a forced liquidation might ravage world markets. A first example of the Too Big To Fail Theory).

The guys of LTCM were extremely good in spot arbitrage opportunities in the bond market; in practice, as soon the correlation between the price of 2 bonds (example T Bond vs. France Bond) was different from its historical average calculated by a complex LTCM model, LTCM entered in the market shorting one bond and buying the other and gaining on the price difference.

LTCM was extremely reliant of its own VAR Risk Model and for every trade was able to calculate not only the probability of a loss but also the amount of the expected loss.

What went wrong? 2 main reasons:

The firm was victim of its own success. Strong money inflow makes it is difficult for LTCM to find arbitrage opportunities in the Bond Market and started to diversify in untested water as the trading of equity and emerging market currencies. The team feels so smart and with the advice of 2 Nobel Professors what could have gone wrong?
The VAR Risk Model was obviously incomplete and didn’t consider non-rational factors such as the behaviour of the political system of emerging countries (as Russia) and the probability that other companies were following the same investment strategies and were forces to sell in the same moment of LTCG causing the collapse of the asset value. TLCM VAR model forecasted a 40% probability for a monthly loss of max $40m. LTCM lost over £4bln in the space of 5 months in 1998….

What can LTCM teach us about the risk assessment pre-investment in a start up?

Mostly investors assume a very high risk of a failure of their seed stage investment. A common valuation methodology is the Harvard Venture Capital Model that assume a very high Discount Rate (WACC) to discount the expected exit proceeds.

The methods assume that 50% is on average the right WACC for the valuation of a start-up.

The WACC could fall to maybe 40% if the company is post revenues, with some tractions and not far from break-even or rise to 60% if the company is still developing the idea (Beta phase).

As the above show the fluctuations in the calculation of the WACC is not a really scientific theory and is mainly based on the assumption of the Investor.

What if could improve the WACC calculation with some more proper assumptions?

Let’s start from the 50% WACC, assuming that 50% is associate for a start up with the following features:

2 Founders (with one previous start up experience)
Monthly Revenues >£20,000
Month on Month Revenues Growth: >25%
Monthly Loss between £10,000 and £20,000
TAM: >£500m

The following table illustrates how differences in the above parameters could increase or reduce the risk associate with the start-up and consequently the WACC.

The fictional Start Up Pall Mall has a much higher risk in 4 or the 5 parameters than the average start up (50% WACC) and so a higher WACC.

[if gte mso 9]><xml> <o:OfficeDocumentSettings> <o:AllowPNG></o:AllowPNG> <o:PixelsPerInch>96</o:PixelsPerInch> </o:OfficeDocumentSettings> </xml><![endif][if gte mso 9]><xml> <w:WordDocument> <w:View>Normal</w:View> <w:Zoom>0</w:Zoom> <w:TrackMoves></w:TrackMoves> <w:TrackFormatting></w:TrackFormatting> <w:PunctuationKerning></w:PunctuationKerning> <w:ValidateAgainstSchemas></w:ValidateAgainstSchemas> <w:SaveIfXMLInvalid>false</w:SaveIfXMLInvalid> <w:IgnoreMixedContent>false</w:IgnoreMixedContent> <w:AlwaysShowPlaceholderText>false</w:AlwaysShowPlaceholderText> <w:DoNotPromoteQF></w:DoNotPromoteQF> <w:LidThemeOther>EN-GB</w:LidThemeOther> <w:LidThemeAsian>X-NONE</w:LidThemeAsian> <w:LidThemeComplexScript>X-NONE</w:LidThemeComplexScript> <w:Compatibility> <w:BreakWrappedTables></w:BreakWrappedTables> <w:SnapToGridInCell></w:SnapToGridInCell> <w:WrapTextWithPunct></w:WrapTextWithPunct> <w:UseAsianBreakRules></w:UseAsianBreakRules> <w:DontGrowAutofit></w:DontGrowAutofit> <w:SplitPgBreakAndParaMark></w:SplitPgBreakAndParaMark> <w:EnableOpenTypeKerning></w:EnableOpenTypeKerning> <w:DontFlipMirrorIndents></w:DontFlipMirrorIndents> <w:OverrideTableStyleHps></w:OverrideTableStyleHps> </w:Compatibility> <m:mathPr> <m:mathFont m:val="Cambria Math"></m:mathFont> <m:brkBin m:val="before"></m:brkBin> <m:brkBinSub m:val="--"></m:brkBinSub> <m:smallFrac m:val="off"></m:smallFrac> <m:dispDef></m:dispDef> <m:lMargin m:val="0"></m:lMargin> <m:rMargin m:val="0"></m:rMargin> <m:defJc m:val="centerGroup"></m:defJc> <m:wrapIndent m:val="1440"></m:wrapIndent> <m:intLim m:val="subSup"></m:intLim> <m:naryLim m:val="undOvr"></m:naryLim> </m:mathPr></w:WordDocument> </xml><![endif][if gte mso 9]><xml> <w:LatentStyles DefLockedState="false" DefUnhideWhenUsed="false" DefSemiHidden="false" DefQFormat="false" DefPriority="99" LatentStyleCount="382"> <w:LsdException Locked="false" Priority="0" QFormat="true" Name="Normal"></w:LsdException> <w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 1"></w:LsdException> <w:LsdException Locked="false" Priority="9" SemiHidden="true" UnhideWhenUsed="true" QFormat="true" Name="heading 2"></w:LsdException> <w:LsdException Locked="false" Priority="9" SemiHidden="true" UnhideWhenUsed="true" QFormat="true" Name="heading 3"></w:LsdException> <w:LsdException Locked="false" Priority="9" SemiHidden="true" UnhideWhenUsed="true" QFormat="true" Name="heading 4"></w:LsdException> <w:LsdException Locked="false" Priority="9" SemiHidden="true" UnhideWhenUsed="true" QFormat="true" Name="heading 5"></w:LsdException> <w:LsdException Locked="false" Priority="9" SemiHidden="true" UnhideWhenUsed="true" QFormat="true" Name="heading 6"></w:LsdException> <w:LsdException Locked="false" Priority="9" SemiHidden="true" UnhideWhenUsed="true" QFormat="true" Name="heading 7"></w:LsdException> <w:LsdException Locked="false" Priority="9" SemiHidden="true" UnhideWhenUsed="true" QFormat="true" Name="heading 8"></w:LsdException> <w:LsdException Locked="false" Priority="9" SemiHidden="true" UnhideWhenUsed="true" QFormat="true" Name="heading 9"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="index 1"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="index 2"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="index 3"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="index 4"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="index 5"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="index 6"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="index 7"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="index 8"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="index 9"></w:LsdException> <w:LsdException Locked="false" Priority="39" SemiHidden="true" UnhideWhenUsed="true" Name="toc 1"></w:LsdException> <w:LsdException Locked="false" Priority="39" SemiHidden="true" UnhideWhenUsed="true" Name="toc 2"></w:LsdException> <w:LsdException Locked="false" Priority="39" SemiHidden="true" UnhideWhenUsed="true" Name="toc 3"></w:LsdException> <w:LsdException Locked="false" Priority="39" SemiHidden="true" UnhideWhenUsed="true" Name="toc 4"></w:LsdException> <w:LsdException Locked="false" Priority="39" SemiHidden="true" UnhideWhenUsed="true" Name="toc 5"></w:LsdException> <w:LsdException Locked="false" Priority="39" SemiHidden="true" UnhideWhenUsed="true" Name="toc 6"></w:LsdException> <w:LsdException Locked="false" Priority="39" SemiHidden="true" UnhideWhenUsed="true" Name="toc 7"></w:LsdException> <w:LsdException Locked="false" Priority="39" SemiHidden="true" UnhideWhenUsed="true" Name="toc 8"></w:LsdException> <w:LsdException Locked="false" Priority="39" SemiHidden="true" UnhideWhenUsed="true" Name="toc 9"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Normal Indent"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="footnote text"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="annotation text"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="header"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="footer"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="index heading"></w:LsdException> <w:LsdException Locked="false" Priority="35" SemiHidden="true" UnhideWhenUsed="true" QFormat="true" Name="caption"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="table of figures"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="envelope address"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="envelope return"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="footnote reference"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="annotation reference"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="line number"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="page number"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="endnote reference"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="endnote text"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="table of authorities"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="macro"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="toa heading"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List Bullet"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List Number"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List 2"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List 3"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List 4"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List 5"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List Bullet 2"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List Bullet 3"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List Bullet 4"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List Bullet 5"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List Number 2"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List Number 3"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List Number 4"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List Number 5"></w:LsdException> <w:LsdException Locked="false" Priority="10" QFormat="true" Name="Title"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Closing"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Signature"></w:LsdException> <w:LsdException Locked="false" Priority="1" SemiHidden="true" UnhideWhenUsed="true" Name="Default Paragraph Font"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Body Text"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Body Text Indent"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List Continue"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List Continue 2"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List Continue 3"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List Continue 4"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List Continue 5"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Message Header"></w:LsdException> <w:LsdException Locked="false" Priority="11" QFormat="true" Name="Subtitle"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Salutation"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Date"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Body Text First Indent"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Body Text First Indent 2"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Note Heading"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Body Text 2"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Body Text 3"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Body Text Indent 2"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Body Text Indent 3"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Block Text"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Hyperlink"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="FollowedHyperlink"></w:LsdException> <w:LsdException Locked="false" Priority="22" QFormat="true" Name="Strong"></w:LsdException> <w:LsdException Locked="false" Priority="20" QFormat="true" Name="Emphasis"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Document Map"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Plain Text"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="E-mail Signature"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="HTML Top of Form"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="HTML Bottom of Form"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Normal (Web)"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="HTML Acronym"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="HTML Address"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="HTML Cite"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="HTML Code"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="HTML Definition"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="HTML Keyboard"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="HTML Preformatted"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="HTML Sample"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="HTML Typewriter"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="HTML Variable"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Normal Table"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="annotation subject"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="No List"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Outline List 1"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Outline List 2"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Outline List 3"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Simple 1"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Simple 2"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Simple 3"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Classic 1"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Classic 2"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Classic 3"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Classic 4"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Colorful 1"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Colorful 2"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Colorful 3"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Columns 1"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Columns 2"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Columns 3"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Columns 4"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Columns 5"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Grid 1"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Grid 2"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Grid 3"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Grid 4"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Grid 5"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Grid 6"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Grid 7"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Grid 8"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table List 1"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table List 2"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table List 3"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table List 4"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table List 5"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table List 6"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table List 7"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table List 8"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table 3D effects 1"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table 3D effects 2"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table 3D effects 3"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Contemporary"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Elegant"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Professional"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Subtle 1"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Subtle 2"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Web 1"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Web 2"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Web 3"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Balloon Text"></w:LsdException> <w:LsdException Locked="false" Priority="39" Name="Table Grid"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Theme"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Note Level 1"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Note Level 2"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Note Level 3"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Note Level 4"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Note Level 5"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Note Level 6"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Note Level 7"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Note Level 8"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Note Level 9"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" Name="Placeholder Text"></w:LsdException> <w:LsdException Locked="false" Priority="1" QFormat="true" Name="No Spacing"></w:LsdException> <w:LsdException Locked="false" Priority="60" Name="Light Shading"></w:LsdException> <w:LsdException Locked="false" Priority="61" Name="Light List"></w:LsdException> <w:LsdException Locked="false" Priority="62" Name="Light Grid"></w:LsdException> <w:LsdException Locked="false" Priority="63" Name="Medium Shading 1"></w:LsdException> <w:LsdException Locked="false" Priority="64" Name="Medium Shading 2"></w:LsdException> <w:LsdException Locked="false" Priority="65" Name="Medium List 1"></w:LsdException> <w:LsdException Locked="false" Priority="66" Name="Medium List 2"></w:LsdException> <w:LsdException Locked="false" Priority="67" Name="Medium Grid 1"></w:LsdException> <w:LsdException Locked="false" Priority="68" Name="Medium Grid 2"></w:LsdException> <w:LsdException Locked="false" Priority="69" Name="Medium Grid 3"></w:LsdException> <w:LsdException Locked="false" Priority="70" Name="Dark List"></w:LsdException> <w:LsdException Locked="false" Priority="71" Name="Colorful Shading"></w:LsdException> <w:LsdException Locked="false" Priority="72" Name="Colorful List"></w:LsdException> <w:LsdException Locked="false" Priority="73" Name="Colorful Grid"></w:LsdException> <w:LsdException Locked="false" Priority="60" Name="Light Shading Accent 1"></w:LsdException> <w:LsdException Locked="false" Priority="61" Name="Light List Accent 1"></w:LsdException> <w:LsdException Locked="false" Priority="62" Name="Light Grid Accent 1"></w:LsdException> <w:LsdException Locked="false" Priority="63" Name="Medium Shading 1 Accent 1"></w:LsdException> <w:LsdException Locked="false" Priority="64" Name="Medium Shading 2 Accent 1"></w:LsdException> <w:LsdException Locked="false" Priority="65" Name="Medium List 1 Accent 1"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" Name="Revision"></w:LsdException> <w:LsdException Locked="false" Priority="34" QFormat="true" Name="List Paragraph"></w:LsdException> <w:LsdException Locked="false" Priority="29" QFormat="true" Name="Quote"></w:LsdException> <w:LsdException Locked="false" Priority="30" QFormat="true" Name="Intense Quote"></w:LsdException> <w:LsdException Locked="false" Priority="66" Name="Medium List 2 Accent 1"></w:LsdException> <w:LsdException Locked="false" Priority="67" Name="Medium Grid 1 Accent 1"></w:LsdException> <w:LsdException Locked="false" Priority="68" Name="Medium Grid 2 Accent 1"></w:LsdException> <w:LsdException Locked="false" Priority="69" Name="Medium Grid 3 Accent 1"></w:LsdException> <w:LsdException Locked="false" Priority="70" Name="Dark List Accent 1"></w:LsdException> <w:LsdException Locked="false" Priority="71" Name="Colorful Shading Accent 1"></w:LsdException> <w:LsdException Locked="false" Priority="72" Name="Colorful List Accent 1"></w:LsdException> <w:LsdException Locked="false" Priority="73" Name="Colorful Grid Accent 1"></w:LsdException> <w:LsdException Locked="false" Priority="60" Name="Light Shading Accent 2"></w:LsdException> <w:LsdException Locked="false" Priority="61" Name="Light List Accent 2"></w:LsdException> <w:LsdException Locked="false" Priority="62" Name="Light Grid Accent 2"></w:LsdException> <w:LsdException Locked="false" Priority="63" Name="Medium Shading 1 Accent 2"></w:LsdException> <w:LsdException Locked="false" Priority="64" Name="Medium Shading 2 Accent 2"></w:LsdException> <w:LsdException Locked="false" Priority="65" Name="Medium List 1 Accent 2"></w:LsdException> <w:LsdException Locked="false" Priority="66" Name="Medium List 2 Accent 2"></w:LsdException> <w:LsdException Locked="false" Priority="67" Name="Medium Grid 1 Accent 2"></w:LsdException> <w:LsdException Locked="false" Priority="68" Name="Medium Grid 2 Accent 2"></w:LsdException> <w:LsdException Locked="false" Priority="69" Name="Medium Grid 3 Accent 2"></w:LsdException> <w:LsdException Locked="false" Priority="70" Name="Dark List Accent 2"></w:LsdException> <w:LsdException Locked="false" Priority="71" Name="Colorful Shading Accent 2"></w:LsdException> <w:LsdException Locked="false" Priority="72" Name="Colorful List Accent 2"></w:LsdException> <w:LsdException Locked="false" Priority="73" Name="Colorful Grid Accent 2"></w:LsdException> <w:LsdException Locked="false" Priority="60" Name="Light Shading Accent 3"></w:LsdException> <w:LsdException Locked="false" Priority="61" Name="Light List Accent 3"></w:LsdException> <w:LsdException Locked="false" Priority="62" Name="Light Grid Accent 3"></w:LsdException> <w:LsdException Locked="false" Priority="63" Name="Medium Shading 1 Accent 3"></w:LsdException> <w:LsdException Locked="false" Priority="64" Name="Medium Shading 2 Accent 3"></w:LsdException> <w:LsdException Locked="false" Priority="65" Name="Medium List 1 Accent 3"></w:LsdException> <w:LsdException Locked="false" Priority="66" Name="Medium List 2 Accent 3"></w:LsdException> <w:LsdException Locked="false" Priority="67" Name="Medium Grid 1 Accent 3"></w:LsdException> <w:LsdException Locked="false" Priority="68" Name="Medium Grid 2 Accent 3"></w:LsdException> <w:LsdException Locked="false" Priority="69" Name="Medium Grid 3 Accent 3"></w:LsdException> <w:LsdException Locked="false" Priority="70" Name="Dark List Accent 3"></w:LsdException> <w:LsdException Locked="false" Priority="71" Name="Colorful Shading Accent 3"></w:LsdException> <w:LsdException Locked="false" Priority="72" Name="Colorful List Accent 3"></w:LsdException> <w:LsdException Locked="false" Priority="73" Name="Colorful Grid Accent 3"></w:LsdException> <w:LsdException Locked="false" Priority="60" Name="Light Shading Accent 4"></w:LsdException> <w:LsdException Locked="false" Priority="61" Name="Light List Accent 4"></w:LsdException> <w:LsdException Locked="false" Priority="62" Name="Light Grid Accent 4"></w:LsdException> <w:LsdException Locked="false" Priority="63" Name="Medium Shading 1 Accent 4"></w:LsdException> <w:LsdException Locked="false" Priority="64" Name="Medium Shading 2 Accent 4"></w:LsdException> <w:LsdException Locked="false" Priority="65" Name="Medium List 1 Accent 4"></w:LsdException> <w:LsdException Locked="false" Priority="66" Name="Medium List 2 Accent 4"></w:LsdException> <w:LsdException Locked="false" Priority="67" Name="Medium Grid 1 Accent 4"></w:LsdException> <w:LsdException Locked="false" Priority="68" Name="Medium Grid 2 Accent 4"></w:LsdException> <w:LsdException Locked="false" Priority="69" Name="Medium Grid 3 Accent 4"></w:LsdException> <w:LsdException Locked="false" Priority="70" Name="Dark List Accent 4"></w:LsdException> <w:LsdException Locked="false" Priority="71" Name="Colorful Shading Accent 4"></w:LsdException> <w:LsdException Locked="false" Priority="72" Name="Colorful List Accent 4"></w:LsdException> <w:LsdException Locked="false" Priority="73" Name="Colorful Grid Accent 4"></w:LsdException> <w:LsdException Locked="false" Priority="60" Name="Light Shading Accent 5"></w:LsdException> <w:LsdException Locked="false" Priority="61" Name="Light List Accent 5"></w:LsdException> <w:LsdException Locked="false" Priority="62" Name="Light Grid Accent 5"></w:LsdException> <w:LsdException Locked="false" Priority="63" Name="Medium Shading 1 Accent 5"></w:LsdException> <w:LsdException Locked="false" Priority="64" Name="Medium Shading 2 Accent 5"></w:LsdException> <w:LsdException Locked="false" Priority="65" Name="Medium List 1 Accent 5"></w:LsdException> <w:LsdException Locked="false" Priority="66" Name="Medium List 2 Accent 5"></w:LsdException> <w:LsdException Locked="false" Priority="67" Name="Medium Grid 1 Accent 5"></w:LsdException> <w:LsdException Locked="false" Priority="68" Name="Medium Grid 2 Accent 5"></w:LsdException> <w:LsdException Locked="false" Priority="69" Name="Medium Grid 3 Accent 5"></w:LsdException> <w:LsdException Locked="false" Priority="70" Name="Dark List Accent 5"></w:LsdException> <w:LsdException Locked="false" Priority="71" Name="Colorful Shading Accent 5"></w:LsdException> <w:LsdException Locked="false" Priority="72" Name="Colorful List Accent 5"></w:LsdException> <w:LsdException Locked="false" Priority="73" Name="Colorful Grid Accent 5"></w:LsdException> <w:LsdException Locked="false" Priority="60" Name="Light Shading Accent 6"></w:LsdException> <w:LsdException Locked="false" Priority="61" Name="Light List Accent 6"></w:LsdException> <w:LsdException Locked="false" Priority="62" Name="Light Grid Accent 6"></w:LsdException> <w:LsdException Locked="false" Priority="63" Name="Medium Shading 1 Accent 6"></w:LsdException> <w:LsdException Locked="false" Priority="64" Name="Medium Shading 2 Accent 6"></w:LsdException> <w:LsdException Locked="false" Priority="65" Name="Medium List 1 Accent 6"></w:LsdException> <w:LsdException Locked="false" Priority="66" Name="Medium List 2 Accent 6"></w:LsdException> <w:LsdException Locked="false" Priority="67" Name="Medium Grid 1 Accent 6"></w:LsdException> <w:LsdException Locked="false" Priority="68" Name="Medium Grid 2 Accent 6"></w:LsdException> <w:LsdException Locked="false" Priority="69" Name="Medium Grid 3 Accent 6"></w:LsdException> <w:LsdException Locked="false" Priority="70" Name="Dark List Accent 6"></w:LsdException> <w:LsdException Locked="false" Priority="71" Name="Colorful Shading Accent 6"></w:LsdException> <w:LsdException Locked="false" Priority="72" Name="Colorful List Accent 6"></w:LsdException> <w:LsdException Locked="false" Priority="73" Name="Colorful Grid Accent 6"></w:LsdException> <w:LsdException Locked="false" Priority="19" QFormat="true" Name="Subtle Emphasis"></w:LsdException> <w:LsdException Locked="false" Priority="21" QFormat="true" Name="Intense Emphasis"></w:LsdException> <w:LsdException Locked="false" Priority="31" QFormat="true" Name="Subtle Reference"></w:LsdException> <w:LsdException Locked="false" Priority="32" QFormat="true" Name="Intense Reference"></w:LsdException> <w:LsdException Locked="false" Priority="33" QFormat="true" Name="Book Title"></w:LsdException> <w:LsdException Locked="false" Priority="37" SemiHidden="true" UnhideWhenUsed="true" Name="Bibliography"></w:LsdException> <w:LsdException Locked="false" Priority="39" SemiHidden="true" UnhideWhenUsed="true" QFormat="true" Name="TOC Heading"></w:LsdException> <w:LsdException Locked="false" Priority="41" Name="Plain Table 1"></w:LsdException> <w:LsdException Locked="false" Priority="42" Name="Plain Table 2"></w:LsdException> <w:LsdException Locked="false" Priority="43" Name="Plain Table 3"></w:LsdException> <w:LsdException Locked="false" Priority="44" Name="Plain Table 4"></w:LsdException> <w:LsdException Locked="false" Priority="45" Name="Plain Table 5"></w:LsdException> <w:LsdException Locked="false" Priority="40" Name="Grid Table Light"></w:LsdException> <w:LsdException Locked="false" Priority="46" Name="Grid Table 1 Light"></w:LsdException> <w:LsdException Locked="false" Priority="47" Name="Grid Table 2"></w:LsdException> <w:LsdException Locked="false" Priority="48" Name="Grid Table 3"></w:LsdException> <w:LsdException Locked="false" Priority="49" Name="Grid Table 4"></w:LsdException> <w:LsdException Locked="false" Priority="50" Name="Grid Table 5 Dark"></w:LsdException> <w:LsdException Locked="false" Priority="51" Name="Grid Table 6 Colorful"></w:LsdException> <w:LsdException Locked="false" Priority="52" Name="Grid Table 7 Colorful"></w:LsdException> <w:LsdException Locked="false" Priority="46" Name="Grid Table 1 Light Accent 1"></w:LsdException> <w:LsdException Locked="false" Priority="47" Name="Grid Table 2 Accent 1"></w:LsdException> <w:LsdException Locked="false" Priority="48" Name="Grid Table 3 Accent 1"></w:LsdException> <w:LsdException Locked="false" Priority="49" Name="Grid Table 4 Accent 1"></w:LsdException> <w:LsdException Locked="false" Priority="50" Name="Grid Table 5 Dark Accent 1"></w:LsdException> <w:LsdException Locked="false" Priority="51" Name="Grid Table 6 Colorful Accent 1"></w:LsdException> <w:LsdException Locked="false" Priority="52" Name="Grid Table 7 Colorful Accent 1"></w:LsdException> <w:LsdException Locked="false" Priority="46" Name="Grid Table 1 Light Accent 2"></w:LsdException> <w:LsdException Locked="false" Priority="47" Name="Grid Table 2 Accent 2"></w:LsdException> <w:LsdException Locked="false" Priority="48" Name="Grid Table 3 Accent 2"></w:LsdException> <w:LsdException Locked="false" Priority="49" Name="Grid Table 4 Accent 2"></w:LsdException> <w:LsdException Locked="false" Priority="50" Name="Grid Table 5 Dark Accent 2"></w:LsdException> <w:LsdException Locked="false" Priority="51" Name="Grid Table 6 Colorful Accent 2"></w:LsdException> <w:LsdException Locked="false" Priority="52" Name="Grid Table 7 Colorful Accent 2"></w:LsdException> <w:LsdException Locked="false" Priority="46" Name="Grid Table 1 Light Accent 3"></w:LsdException> <w:LsdException Locked="false" Priority="47" Name="Grid Table 2 Accent 3"></w:LsdException> <w:LsdException Locked="false" Priority="48" Name="Grid Table 3 Accent 3"></w:LsdException> <w:LsdException Locked="false" Priority="49" Name="Grid Table 4 Accent 3"></w:LsdException> <w:LsdException Locked="false" Priority="50" Name="Grid Table 5 Dark Accent 3"></w:LsdException> <w:LsdException Locked="false" Priority="51" Name="Grid Table 6 Colorful Accent 3"></w:LsdException> <w:LsdException Locked="false" Priority="52" Name="Grid Table 7 Colorful Accent 3"></w:LsdException> <w:LsdException Locked="false" Priority="46" Name="Grid Table 1 Light Accent 4"></w:LsdException> <w:LsdException Locked="false" Priority="47" Name="Grid Table 2 Accent 4"></w:LsdException> <w:LsdException Locked="false" Priority="48" Name="Grid Table 3 Accent 4"></w:LsdException> <w:LsdException Locked="false" Priority="49" Name="Grid Table 4 Accent 4"></w:LsdException> <w:LsdException Locked="false" Priority="50" Name="Grid Table 5 Dark Accent 4"></w:LsdException> <w:LsdException Locked="false" Priority="51" Name="Grid Table 6 Colorful Accent 4"></w:LsdException> <w:LsdException Locked="false" Priority="52" Name="Grid Table 7 Colorful Accent 4"></w:LsdException> <w:LsdException Locked="false" Priority="46" Name="Grid Table 1 Light Accent 5"></w:LsdException> <w:LsdException Locked="false" Priority="47" Name="Grid Table 2 Accent 5"></w:LsdException> <w:LsdException Locked="false" Priority="48" Name="Grid Table 3 Accent 5"></w:LsdException> <w:LsdException Locked="false" Priority="49" Name="Grid Table 4 Accent 5"></w:LsdException> <w:LsdException Locked="false" Priority="50" Name="Grid Table 5 Dark Accent 5"></w:LsdException> <w:LsdException Locked="false" Priority="51" Name="Grid Table 6 Colorful Accent 5"></w:LsdException> <w:LsdException Locked="false" Priority="52" Name="Grid Table 7 Colorful Accent 5"></w:LsdException> <w:LsdException Locked="false" Priority="46" Name="Grid Table 1 Light Accent 6"></w:LsdException> <w:LsdException Locked="false" Priority="47" Name="Grid Table 2 Accent 6"></w:LsdException> <w:LsdException Locked="false" Priority="48" Name="Grid Table 3 Accent 6"></w:LsdException> <w:LsdException Locked="false" Priority="49" Name="Grid Table 4 Accent 6"></w:LsdException> <w:LsdException Locked="false" Priority="50" Name="Grid Table 5 Dark Accent 6"></w:LsdException> <w:LsdException Locked="false" Priority="51" Name="Grid Table 6 Colorful Accent 6"></w:LsdException> <w:LsdException Locked="false" Priority="52" Name="Grid Table 7 Colorful Accent 6"></w:LsdException> <w:LsdException Locked="false" Priority="46" Name="List Table 1 Light"></w:LsdException> <w:LsdException Locked="false" Priority="47" Name="List Table 2"></w:LsdException> <w:LsdException Locked="false" Priority="48" Name="List Table 3"></w:LsdException> <w:LsdException Locked="false" Priority="49" Name="List Table 4"></w:LsdException> <w:LsdException Locked="false" Priority="50" Name="List Table 5 Dark"></w:LsdException> <w:LsdException Locked="false" Priority="51" Name="List Table 6 Colorful"></w:LsdException> <w:LsdException Locked="false" Priority="52" Name="List Table 7 Colorful"></w:LsdException> <w:LsdException Locked="false" Priority="46" Name="List Table 1 Light Accent 1"></w:LsdException> <w:LsdException Locked="false" Priority="47" Name="List Table 2 Accent 1"></w:LsdException> <w:LsdException Locked="false" Priority="48" Name="List Table 3 Accent 1"></w:LsdException> <w:LsdException Locked="false" Priority="49" Name="List Table 4 Accent 1"></w:LsdException> <w:LsdException Locked="false" Priority="50" Name="List Table 5 Dark Accent 1"></w:LsdException> <w:LsdException Locked="false" Priority="51" Name="List Table 6 Colorful Accent 1"></w:LsdException> <w:LsdException Locked="false" Priority="52" Name="List Table 7 Colorful Accent 1"></w:LsdException> <w:LsdException Locked="false" Priority="46" Name="List Table 1 Light Accent 2"></w:LsdException> <w:LsdException Locked="false" Priority="47" Name="List Table 2 Accent 2"></w:LsdException> <w:LsdException Locked="false" Priority="48" Name="List Table 3 Accent 2"></w:LsdException> <w:LsdException Locked="false" Priority="49" Name="List Table 4 Accent 2"></w:LsdException> <w:LsdException Locked="false" Priority="50" Name="List Table 5 Dark Accent 2"></w:LsdException> <w:LsdException Locked="false" Priority="51" Name="List Table 6 Colorful Accent 2"></w:LsdException> <w:LsdException Locked="false" Priority="52" Name="List Table 7 Colorful Accent 2"></w:LsdException> <w:LsdException Locked="false" Priority="46" Name="List Table 1 Light Accent 3"></w:LsdException> <w:LsdException Locked="false" Priority="47" Name="List Table 2 Accent 3"></w:LsdException> <w:LsdException Locked="false" Priority="48" Name="List Table 3 Accent 3"></w:LsdException> <w:LsdException Locked="false" Priority="49" Name="List Table 4 Accent 3"></w:LsdException> <w:LsdException Locked="false" Priority="50" Name="List Table 5 Dark Accent 3"></w:LsdException> <w:LsdException Locked="false" Priority="51" Name="List Table 6 Colorful Accent 3"></w:LsdException> <w:LsdException Locked="false" Priority="52" Name="List Table 7 Colorful Accent 3"></w:LsdException> <w:LsdException Locked="false" Priority="46" Name="List Table 1 Light Accent 4"></w:LsdException> <w:LsdException Locked="false" Priority="47" Name="List Table 2 Accent 4"></w:LsdException> <w:LsdException Locked="false" Priority="48" Name="List Table 3 Accent 4"></w:LsdException> <w:LsdException Locked="false" Priority="49" Name="List Table 4 Accent 4"></w:LsdException> <w:LsdException Locked="false" Priority="50" Name="List Table 5 Dark Accent 4"></w:LsdException> <w:LsdException Locked="false" Priority="51" Name="List Table 6 Colorful Accent 4"></w:LsdException> <w:LsdException Locked="false" Priority="52" Name="List Table 7 Colorful Accent 4"></w:LsdException> <w:LsdException Locked="false" Priority="46" Name="List Table 1 Light Accent 5"></w:LsdException> <w:LsdException Locked="false" Priority="47" Name="List Table 2 Accent 5"></w:LsdException> <w:LsdException Locked="false" Priority="48" Name="List Table 3 Accent 5"></w:LsdException> <w:LsdException Locked="false" Priority="49" Name="List Table 4 Accent 5"></w:LsdException> <w:LsdException Locked="false" Priority="50" Name="List Table 5 Dark Accent 5"></w:LsdException> <w:LsdException Locked="false" Priority="51" Name="List Table 6 Colorful Accent 5"></w:LsdException> <w:LsdException Locked="false" Priority="52" Name="List Table 7 Colorful Accent 5"></w:LsdException> <w:LsdException Locked="false" Priority="46" Name="List Table 1 Light Accent 6"></w:LsdException> <w:LsdException Locked="false" Priority="47" Name="List Table 2 Accent 6"></w:LsdException> <w:LsdException Locked="false" Priority="48" Name="List Table 3 Accent 6"></w:LsdException> <w:LsdException Locked="false" Priority="49" Name="List Table 4 Accent 6"></w:LsdException> <w:LsdException Locked="false" Priority="50" Name="List Table 5 Dark Accent 6"></w:LsdException> <w:LsdException Locked="false" Priority="51" Name="List Table 6 Colorful Accent 6"></w:LsdException> <w:LsdException Locked="false" Priority="52" Name="List Table 7 Colorful Accent 6"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Mention"></w:LsdException> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Smart Hyperlink"></w:LsdException> </w:LatentStyles> </xml><![endif][if gte mso 10]> <style> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Calibri",sans-serif; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-fareast-language:EN-US;} </style> <![endif]StartFragment

Standard Case

- 2 Founders (with one previous start up experience)

100%

- Monthly Revenues >£20,000

100%

- Month on Month Revenues Growth: >25%

100%

- Monthly Loss between £10,000 and £20,000

100%

- TAM: >£500m

100%

Average

100.0%

WACC

50.0%

Start Up Pall Mall

One Founder (no previous start up experience)

75%

Monthly Revenues: £50,000

120%

Month on Month Revenues Growth: 15%

90%

Monthly Loss: 50,000

75%

TAM: £250m

80%

Average

88.0%

WACC

56.82%

The investor has still strong discretion in the calculation of the correlation vs the standard parameters but is also able to identify the additional risk factors and calculate a specific WACC for the company under analysis.

![endif]--